Classic Products is evaluating a possible investment in a new plant costing $1000. By the end of a year they will know whether cash flows will be $140 a year in perpetuity or only $50 a year, but in either case the first cash flow will not occur until year 2. Alternatively, they would be able to sell their plant in year 1 for $700 ($800, if things go well). They assess a 70 percent chance that the project will turn out well and a 30 percent chance it will turn out badly. Their opportunity cost of funds is 10 percent. What should they do? Use a decision tree approach. Are there limitations of the decision tree approach in general for dynamic investment decisions? Explain.